We all know that accountants are the backbone of any financially successful business. They help keep both you and your money in check. Keeping that in mind, many people overlook the fact that your accountant sees anything and everything you purchase with company funds. Yes – everyTHING…and everyWHERE. Nothing is more entertaining to me on a Monday than seeing exactly how much fun you had over the weekend. That being said, please think about these two things before using your company card.
Factors to Consider Before Spending Company Funds:
1. Communication in advance is best
First of all, the whole point of having an accountant is so that they can track and report what is happening in your business and bank accounts. No matter what the situation is, be sure to let your accountant know of any personal, high dollar, or unusual transactions at the very least, right away but preferably in advance. This way we don’t have to track you down and ask questions later on. It’s our job to protect you by looking for outlier-type transactions. Also, making certain significant business purchases without financial guidance can have big tax or legal consequences. If there is a financial situation that’s high dollar or that you aren’t too sure about, it’s best to work with your accountant in advance.
(Similar to: Does Your Company Need Outsourced CFO Services? )
2. Keep personal expenses PERSONAL
There are several reasons why your personal and business expenses need to be separate. If you run a personal expense through the business, know that whoever is in charge of your books will definitely see it. Depending on what you were up to, we might get a giggle out of it, but it will be considered a personal distribution to you from the company. If you don’t want an electronic record of your personal transactions, but need to use business funds, just make cash withdrawals. You can also write a business check to yourself to transfer money privately.
(Similar to: 3 Reasons Why Your Controller is Stressed Out )
Trust is the key to working with your accountant to accomplish your goals. That being said, the more honest you are with them and yourself, the easier tracking your funds will be. If you’re looking for someone to take care of your books in confidence, feel free to contact me at StacyB@whhcpas.com.
Cheers to a new week!
By Stacy Bring, Director of the WHH Controller Program
Stacy is a Fresno State educated MBA who has served in accounting, controller and CFO roles for several local businesses. Her unique talents and experience teach business owners to translate numbers into useful and forward-thinking business decisions.
